People Express

Key Learning points

The purpose of the simulator is to give you insight into the issues raised by the case; to illustrate the difficulties of co-ordinating operations and strategy in a growth market; and to understand the dynamic interconnections among a firm, its market, and its competitors.

In summary:

Business systems, like other complex social systems, show complex behaviour over time

This complexity is caused by the feedback that occurs in all real-world cases, whether reinforcing growth (e.g. from word-of-mouth amongst passengers), imposing limits to growth (e.g. failure to provide sufficient aircraft) of triggering rapid collapse (e.g. pressure on staff driving resignations, which further raises pressure on those who remain)